Correlation Between Walgreens Boots and Cathay Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Walgreens Boots Alliance and Cathay Biotech, you can compare the effects of market volatilities on Walgreens Boots and Cathay Biotech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walgreens Boots with a short position of Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Cathay Biotech.
Diversification Opportunities for Walgreens Boots and Cathay Biotech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walgreens and Cathay is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech and Walgreens Boots is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walgreens Boots Alliance are associated (or correlated) with Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Walgreens Boots i.e., Walgreens Boots and Cathay Biotech go up and down completely randomly.
Pair Corralation between Walgreens Boots and Cathay Biotech
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Cathay Biotech. In addition to that, Walgreens Boots is 1.14 times more volatile than Cathay Biotech. It trades about -0.09 of its total potential returns per unit of risk. Cathay Biotech is currently generating about -0.01 per unit of volatility. If you would invest 5,422 in Cathay Biotech on September 14, 2024 and sell it today you would lose (921.00) from holding Cathay Biotech or give up 16.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.58% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Cathay Biotech
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Cathay Biotech |
Walgreens Boots and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Cathay Biotech
The main advantage of trading using opposite Walgreens Boots and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots position performs unexpectedly, Cathay Biotech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cathay Biotech will offset losses from the drop in Cathay Biotech's long position.| Walgreens Boots vs. PetMed Express | Walgreens Boots vs. 111 Inc | Walgreens Boots vs. China Jo Jo Drugstores | Walgreens Boots vs. High Tide |
| Cathay Biotech vs. Suofeiya Home Collection | Cathay Biotech vs. Meinian Onehealth Healthcare | Cathay Biotech vs. Dezhan HealthCare Co | Cathay Biotech vs. PKU HealthCare Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |